Without much fanfare, the Small Business Administration (www.sba.gov) has proposed changing the law under which SBA loans are made.
SBA loans have preferential rates and terms, and can be very advantageous to small, rapidly growing companies that might have difficulty in qualifying for a standard bank or credit union loan.
Presumably there is a 90-day review window, so if you want to provide input, contact your US Congressperson.
The changes reduce the number of categories in which loans can be made but increase the number of employees and revenue which can be used to categorize a small business loan.
Some company categories are governed by employee size, and others by revenue.
According to the Phoenix Business Journal is that the number of eligible companies has increased over 114,000 nationally.
Many of formerly different categories are now consolidated. For example, full service, limited service and snack restaurants are all grouped under the ‘restaurant’ category.
Check to see what category you’re in.
Generally, go to www.sba.gov and review the changes if you are thinking of applying for an SBA loan.